CitiBank hikes home loan rates after no movement from the RBA

By Polly Fleeting · · 4 min read
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While it isn’t one of the big four, CitiBank is still a prominent player in the Australian financial game, however, it seems that they’ve changed their tactics.

Yesterday, CitiBank bumped up its home loan rates, yes that’s right bumped up not down. 

The bank has shifted rates for both owner occupiers and investors, up to 25 basis points, across both its variable and fixed rate mortgage products. 

Citi claims that the change has come as an attempt to prioritise existing applications and ultimately improve processing times. 

Mozo’s Banking Expert, Peter Marshall says that the reality behind the rate changes  made by CitiBank is to increase the bank’s bottom line. 

“There could be an element of trying to slow down the number of assessment requests they are getting,” he said.  

“To some extent it’s a logical thing to do to try and slow down the number of pre-approval requests you’re getting, especially if you are getting a lot of broker traffic where you could be doing a lot of work that ends up going nowhere. So there definitely could be an argument to say that what they are doing is just to manage the levels of customer service they want to be able to commit to.”

RELATED ARTICLE: December RBA meeting: Interest rates remain 0.75% 

On Tuesday, the RBA decided to leave the current 0.75% official cash rate unchanged, however, over the course of 2019 they made cuts on three occasions - in June, July and October - and experts predict another cut sometime in the New Year. 

And CitiBank appeared to be following suit, well, sort of. They started off with a bang when in June they slashed their Standard Variable Rate by 0.25%, then in July they dropped again by 0.18% and then finally by 0.15% in October. 

However, Citi’s rates have been propped back up again, so here’s a rundown of all the changes CitiBank made for both owner occupiers and investors making principal and interest repayments this week: 

ProductOwner OccupierChange InvestorChange
Basic Variable3.06%+0.10%3.29%Nil
Standard Variable3.19%+0.23%3.39%+0.10%
Offset Variable3.19%+0.23%3.39%+0.10%
1 Year Fixed2.89%+0.15%3.09%+0.10%
2 Year Fixed2.89%+0.15%3.09%+0.10%
3 Year Fixed2.89%+0.15%3.09%+0.10%
5 Year Fixed2.99%+0.25%3.19%+0.20%

For investors making interest-only repayments CitiBank’s Standard Variable Rate as well as the Offset Variable Rate spiked by 0.20% and the 5 year fixed rate also jumped up by 0.10%. 

Despite the changes, CitiBank’s fixed and variable rates are still competitive when compared to other lenders on Mozo’s database. 

“These rate increases says to me that Citi aren’t that keen on getting new business and that their appetite is, for whatever reason, lower,” Marshall said.

“I don’t think that they’ll be dropping rates again anytime soon.” 

RELATED ARTICLE: 'Liar loans' on the rise: 1 in 3 Australian home buyers guilty of fibbing

If you’re on the hunt for a competitive home loan, there are plenty of hot offers around. Check out the table below for a handful of them, and for even more jump over to our home loan comparison tool.

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Last updated 5 December 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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